-
al
State troubles lead to
lower 'U' bond rating
By NANCY BILYEAU v In the wake of state cuts in fiscal aid return because the risk is greater,"
sale of a University bond may to higher education, S & P lowered the Pilcher siad.
an investor less today than it rating of six University bond issues If the University planned to build a
lhave three days ago due to a from AA to AA-. new dormitory, they wotfld have to
;rading ofbonds announced Wed- Bond agencies still consider a AA- a charge higher interest rates on the
y by Standard & Poor's rating good rating that is well above the dorm revenue bonds sold because the
y. questionable market value, interest would be higher, Pilcher ex -
- -. S & P INSTITUTED the rating' plained.
change primarily because of a five per- THE BONDS FOR the University
cent cut in state higher education aid, Events and Recreation buildings, the
said First Michigan Corp. spokesman Graduate Library, acquisition of old St.
pt I "After talking to state officials, they ts on the Dearborn campus were among
don't see a total restoration of the fiscal those lowered by S & P.
+*-'81 cuts," Weitzmann said. University officials and advisers ex-
The rating change "has no effect on pressed confidence yesterday that S &
the University," said James P's actions would not set back any new
is preserved on Brinkerhoff, University vice-president. building projects now in the works.
mm n~r-~~r~n m."It only has effect on people who own Norman Herbert, the University's in-
bond issues and how they're going to vestment officer, said it's too early to
I JJLJnn OL MLU buy and sell them." predict the impact on plans for the $210
HOWEVER, OTHER finance million new University Hospital slated
The Michigan Daily analysts fear that S & P's downgrading for Fall '81 construction.
421 Manar Steetmay make it more difficult for the "We have not had any hospital bond
420Universityto'raise capital for future issues rated as of yet," Herbert said.
AND projects. The University is currently involved
Graduate Library S & P's perception of a University in discussions with S & P in an effort to
bond is that it's "less worthy than it was restore the bonds to their former
before," said Finance Prof. James rating.
Pilcher. The New York-based firm may be in-
"It will mean that people who buy vited to Ann Arbor's campus soon for a
bonds will require a higher rate of day of tours and discussions,
Brinkerhoff said at yesterday's Regen-
ts meeting.
According to Brinkerhoff, the
MICHIG AN THEATRE University's bond rating was reduced
less than the other state schools.
A-ALAN Central Michigan University, Wayne
State University, Michigan State
University, and Western Michigan
University were among those affected
A !!A Aby S & P's downgrading.
04
8I
Daily Photo by MAUREEN O'MALLEY
THIS HOUSE located at 1700 Broadway is the proposed site for a halfway house for up to 70 state prisoners. The
proposal to use the house for this purpose has drawn criticism from nearby residents and city and University officials.
University joins liso
halfway
(Continued from Page 1)
disputes over working conditions.
John Gellick, who supervises local
halfway houses for the state, admits,
"I'm going into a no-win situation on
Wednesday," and will be "the lone
representative of the state."
"After a tragedy such as the recent
murder, people are not going to be
talking rationally," he said. But, I'm
not a public floormat, and I'm not going
to take too much abuse."
GELLICK ADMITS that prisoners
are walking around during the daytime
and that no one is following them.
However, he said that the program was
more cost-effective and that halfway
houses have a "good track record" as
house protesters
correctional facilities.
Councilwoman Leslie Morris (D-
Second Ward), referred to the proposed
facility as an "open door prison," but
spokes persons for the Department of
Corrections argue that consolidation
of small halfway houses under one roof,
would enable the state to finance 24-
hour supervision of the prisoners, and
increased staff and services.
"If we're able to operate in this man-
ner in Ann Arbor, I think we'll do a
much better job with the program,"
Gellick said.
Morris charged that the state was
"taking advantage of tolerance in
University areas" of things that would
not be accepted in other more affluent
neighborhoods.
But neighborhood residents are not
taking the proposal lightly. Rob Ewing,
a Broadway Avenue resident,
organized many neighborhoods who
wrote letters, circulated petitions, and
vowed to go to the hearing.
Attorney John Laird, who is
representing some of the neighbors,
said, "the people out there are scared to
death."
June Schauer, a 35-year resident on
Broadway, vowed to move out if the
center becomes a halfway house. "But,
I'm worried I might, have trouble
selling my place," she said.
t"I"
}
NflI .!I N STA TE (OF? .TA TE 4ADDRE.S:
Regents
suggest
study of
state taxes
Continued from Page 3
"We've got to get going on this
thing."
State Sen. Edward Pierce (D-Ann
Arbor) aproached the Regents to
assure then tiat the University's'
financial situation is not so gloomy.
Stressing that the University is
one of the finest educational in-
stitutions in the world, the Michigan
alumnus said A'I'm not sure how
many of my colleagues (in the
legislature) know that," implying
that he would aid the University in
getting sufficient funds to maintain
high academic standards.
Views mixed on tax plan.
(Continued from Pagel1)
Republicans but got an expectedly cool
reception from the legislature's ruling
Democrats.
Interest rates on
m ortgages tip
WASHINGTON (AP)-The Federal
Home Loan Board says it doesn't ex-
pect any good news for prospective
house buyers for a while.
The board reported that hqmebuyers
paid an average of 14.93- ercent in-
terest on mortgages in early Decem-
ber, the fourth straight mont {in which'
the rate increased. Also, the average
price of houses purchased increased
from $69,800 in November to $73,000
early last month,'the board said.
"Some further increase in mortgage
commitment rates may be anticipated
as thrift institutions continue to be buf-
feted by increases in their costs of fun-
ds," the board said.
"I don't think there was a great deal
of substance to it," said House Speaker
Bobby Crim (D-Davison). The speaker
was miffed that Milliken consulted with
Republicans-but not Democrats-on
his tax plan.
SENATE REPUBLICAN LEADER
Robert VanderLaan of Kentwood
praised the message as "a broad-based
blueprint for expanding Michigan's
economy."
Senate Democratic Leader William
Faust' of Westland was conspicuously.
absent. Aides said he skipped the
speech to attend a legislative conferen-
ce which begins Friday in Sarasota,
Fla.
Conservative Republican Sens. John
Welborn of Kalamazoo and Edgar
Fredricks of Holland vowed to in-
troduce a modified version of last fall's
property tax halving Tisch Tax Cut
Amendment for placement on the ballot
along with the governor's latest plan.
Milliken laced his speech with
references to his long tenure in Lansing
but stressed he enjoys his job and is not
looking elsewhere.
Other key proposals in the annual ad-
dress and 96-page accompanying
message included a reduction in the
legislative calendar, curbs on the
revolving door between government
and private industry and creation of a
regional presidential primary.
Faculy group to sue"
MSU over layoffs
RALPH HERBERT-NANCY HODGE
SCHUG9ERT SONGS
January 19th 8:05 pm WUOM 91 .7 FM
EAST LANSING (UPI)-A Michigan
State University faculty group plans to
file suit against MSU over 212 days of
temporary layoffs implemented last
month as a budget-cutting move, it was
disclosed yesterday.
The American Association of Univer-
sity Professors-Michigan State Univer-
sity said the furloughs violate what
amounts to a contract between the
university and the faculty members.
THE GROUP SAID its suit will seek
back pay and an order preventing fur-
ther layoffs.
The layoffs approved by the MSU
Board of Trustees last month were part
of a four-part budget plan designed to
compensate for a $10.1 million deficit.
The plan also included a $20 tuition sur-
charge for all students this term.
Frank Blatt of the AAUP-MSU
executive committee said proof of
financial exigency is required before
budget-cutting measures affecting the-
faculty can be taken.
Blatt said the faculty affairs commit-
tese at MSU was not consulted before
employees were notified about the
layoff.
The Michigan State University Em-
ployees Association, a clerical-
technical union, has filed for binding
arbitration on the issue.
Cinema I
presents
COMING HOME
(Hal Ashby, 1978)
Winner of five Academy Awards, this film returns us to the
1960's in a drama of love and war. The insistent beat of such
musicians as RICHIE HAVENS and the ROLLING STONES com-
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create a setting of paranoia and passion in which the tender
love affair of a paraplegic Vietnam Vet and a Marine officer's
wife grows. JON VOIGHT and JANE FONDA both won Academy
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The Man Who W'id Be
(John P0
Two former English so' CAINE and
NERY) decide to own territoryi
century India. r'.isguised as a holyn
servant, the .1ains and cross glaciers t
the forbidd L . y where, through luck andc
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35 mm. (129) 7:00 and 9:15.
King
SEAN CON-
in late 19th
man and his
to penetrate
coincidence,
and implaus-
Afghanistan.
$2.00
Sataurday, Jan. 17
Aud. A
DANCE SHORTS
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